CNBC's Jim Cramer stated that investors often make the mistake of treating fast-growing industries as winner-take-all markets, even when multiple companies can succeed:
He pointed to AI chips, cybersecurity, and retail as examples where growing demand has created opportunities for several long-term winners:
"There's room for many companies at each step of the AI food chain. It's not kill or be killed," Cramer said:
He noted that AMD shares fell 6% on Wednesday, despite a solid earnings report, after Elon Musk said SpaceX would build its artificial intelligence infrastructure "exclusively on Nvidia" because it believes the Vera Rubin architecture is "the best AI computer." Cramer said the market's reaction reflected Wall Street's tendency to treat AI as a winner-take-all race, even though demand is large enough to support multiple winners:
"There may be trillions of dollars in CPU and GPU demand by 2030," he said:
Cramer noted that AMD has built a strong graphics processing unit (GPU) business to compete with Nvidia, while also developing a leading central processing unit (CPU) franchise that regularly takes share from Intel:
"Intel, AMD, Nvidia, all three are terrific," he said:
"Any of them can be bought, because the opportunity that lies ahead is so massive." Cramer also pointed out that the same principle extends beyond semiconductors:
"In retail, Cramer said investors have historically treated TJX, Burlington, and Ross Stores as though only one could succeed, despite all three producing strong long-term returns," he said:
